President Donald Trump announced on Friday that he plans to transfer two important functions of the Department of Education to new departments. The Small Business Administration will take on the responsibility of managing student loans, while the Department of Health and Human Services will handle special needs and nutrition efforts.
Trump stated that the decision was made to improve the management of the student loan portfolio, which currently amounts to $1.6 trillion and serves 43 million people. The move aims to ensure that these programs are serviced more effectively.
The Small Business Administration, led by Kelly Loeffler, will now oversee student loans, which were previously managed by the Federal Student Aid Office within the Department of Education. Meanwhile, the Department of Health and Human Services, under Robert F. Kennedy Jr., will take on special needs and nutrition programs.
Despite these changes, Trump assured that core functions such as Pell Grants and funding for children with disabilities will be preserved and redistributed to other agencies for continued support.
The implementation of this plan, including the transfer of portfolios to new departments, is set to take place immediately. However, legal challenges are expected, particularly concerning the Higher Education Act of 1965, which designates the oversight of the Federal Student Aid Office to the Secretary of Education.
“The American Federation of Teachers’ press secretary, Andrew Cook, mentioned the importance of grants in helping students achieve higher education. He highlighted the expertise of the Department’s office of Federal Student Aid in managing the student aid program as it is mandated to do so by law,” AFT President Randi Weingarten responded more assertively, stating, “See you in court,” following Trump’s signing of the executive order on Thursday. Trump has announced plans to relocate student loans and special needs programs to different departments.”
